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08-133 ASIC releases new insolvency statistics
ASIC has been working with the insolvency profession to capture insolvency related information about companies and has today released a report covering information gathered from corporate insolvencies between 2004 and 2007.
When liquidators, administrators and receivers (external administrators) are appointed to a company they must lodge a report with ASIC as soon as practicable for most corporate insolvencies. External administrators lodge these reports in an electronic format, Notification of information requested in Schedule B to ASIC's Practice Note 50 (Schedule B report) although this format is not mandatory.
In June 2002, the first electronically lodged Schedule B report was recorded through the registered liquidator portal created by ASIC. As part of this process, ASIC promised that when sufficient reports were lodged itto would collate and publish statistics from electronically lodged Schedule B reports in an aggregate and anonymous form.
The financial information in these reports reflects estimates and opinions of the external administrator at a point in time. It is not an account prepared at the end of an external administration. This and other limitations of the statistics are explained in the report. Provided these limitations are understood, the statistics are a useful guide to the overall picture of corporate insolvencies in Australia for ASIC, as well as for academics, the Government, the insolvency profession and other interested stakeholders.
The number and percentage of reports electronically lodged electronically has become large enough to publish meaningful statistics, with good representation from a wide range of companies. ASIC is now releasing a summary of the information collected, covering Schedule B reports lodged electronically in the 2004/2005, 2005/2006 and 2006/2007 financial years.
The data provided in these Schedule B reports will help ASIC to better target its efforts in relation to corporate insolvency.